TMODULE-4 155I^NMENT

ARUNESH ANKUR
BTEM1O302/188
EEE
AMS 1 Cost nefers Bo the monelany eps Je f Ha
aueut eseite 5 ven p oo1 vs e foN
some speeiled pujpes 915 He value h e
goeels or sevces expeneded to 8bjein crNENE
u j e boneHs

Classilieahon sty-
clossilicalio by nahre
a) Materiel cest Cost d any Malenials re use in Hne
P78-duang 7qonds
6) Labe eost ' - co1s i
ef Hè salbny and nsaes peid
o eple
e)Ezpeyses.- Al othe pe1ses aheeiated wiH
ngkin and selling he g00ds os senes
iClassicaho6yancho-
a) Podluthon Coss- Atl cesls 201eyned ith achal
ma nufathNny censbuehoj i7 e gosd
b) LeyHerfcial Cosb-Tt inludes e aduuiy cosh,sellyug
Ces bs, selun arl disbuio cosls ek
)CLapnjcahon by TtaceaHity
a)isfetcests:- 7hese cosk oTe eonly, ieleahfhed wi
speih cest unib estes
ost
b) Tndieteat cosH- Re amet erH, idesnijp ptase crtt.
-seatf pe baildi'g
v Loipcohon by Wot nealily-
Nor mal cst Pant te cest ef pnpduetycoy
and
po7t a
fke coshn2 pafil d lots
AlAbno1 nial Coss!-
7hese cosh ate naf
pd at gen
a lerel neally incary_
f ontput /7 Cqdihons j
Aeh moimad Corels f rulpul oca
(2 ah|st Cost st cost s usuallp, h e
Cest af ge brotg a achily stotte and oeewis
oNce Saly J:- fo1 derillin, vrfa chirne puTchose
el

(b) Cpeyalng ainlanmce cest ?- 94 is he cost that

Gewtsduin he opejahojal peieds and incldes
Labay Ost 1epate ctst, uta% cest 175uJaNLe
Cost, ek.

)ispesal cost - icleudes these 1orgecuiap ess

shutlit dewt he epejahoy onl he stebegewent
arned olapésal f assek at he endd h e ife egele

Past and 3unk Cost - 9 is oje that has ocied

i1 he Past ad has nen s1eleyaMce o esi mdes i
luleste COSE and seveIes Jelafed to q1 alle1Nti1
Ce1se acho1. 7hus, Suk cost Ë CeHmen to all
cellernahVes, is ot pott o he fuleeje cosh lers,
and con be diso1eqaided 17 a7 eg1CeNA eanei
anels
pejalin9 Cot- The6e aye he ongoion eapeNes
kopchatehycuwejed frvul he 7Ootnjaloy'.fo-day
91Uu199/7 baustqess that imcleude brBh oaveihend ard
9Lu77r19
Coss a oods cold.
14) ejett and 17aotect cost-yeck cests aye cests
hat ca7 be sens cp7bly, Yezsufe_d ond allocated Fo
a
speephe ouputf wnfk achi The Cabor1
and
and mal etlal ess diegey antcdtd enh a padU,
setnce , 0f coistqeuckio acinhy aje dised ass
ey the Naletal yeeded to maee a scissoys atdd
be a losfeet cost

Lndisjeeh ces eje eèsk hat ore ilfeult lo allbeke

o speeifpe oupat o ectk aehny. Noynuad4y
aye cosi allecated Haough a seletled fottul to
hhe cuput osf ooK ach y.
Dg- he cest co 7
tols
(Pa1Ce cost Cost ispIcal Hhe experse imejed fot
makn apMeaUt oNsenees hat s sld by a
Coupany Pnce is he ayr7k a cuslenyet s oi tli7
o pa pT a
pIed or
setVice
Paceey coiHt- The cest at ilent e o d s or

a sevicE i7 tef 4S he yatios lacosfs obi ch have

plafedaPoTf /7 ib P3telludTY o
availobiahy,

Po0ducHoy cast- S1 Efet to he esB

q ceDIed
ptv 1 a Senuce.

Tatol cest sales pne:-

cosf = Mamalacleonirz Selliong exepeyses t otbat
Tofal
Ans. 3) Ovethead eapenseas 1efet to hose epenses
arseeradecl twith qUnaM a bupess hal cool b

linked focteahn podueing a povdur or

the
sence. Ovelheadl cosk ane a a he cosk om

Ceupany's 7cente 3halemey exceph fpet hese

has ave oligeotly 1elaled to nuanefatherry e

sellin apoBlurl 01 pormdbng a Semce.

Allocaliot aBvetheaal Coss

for Pracdin eal he ovetheadars, he fatas sh-
Geld bednded 1yb elilerez depoylfeg tach
depotulenh should keepan alouzt expenses Tbe
Sejice depofutezts eiee Stores plami'ngdepathafezk
ee alyo shetdd keep a n a t e e t ate aii
Perce C l e pine cost!-
ovethead cost Tolal ovegheod wstfPime ost)eeo
7his me Hhad Is sui le be 17 he
1ohefe only oye hype ef Pxoduttlollessin9
l.
Cases-

manula chujed
r's
being
2Lohene lisgeat labot amd distec nmaletial crss
aue eanly sawMe
2)
Peoceqlage. an iotect laba eosl
Y.overthead cost :
lTotal ove heod ust/Acgeet lobow| cast) ueD
This me thod ts
wefl usheye He produeb aje
mazufaspopeof
anaal paocod
Pence7lage Aigert labnueteriolcos/-
. ovetheaclcost -lTotol oyethead cest/Aiageak naperiolen) eOD
This mebod is ypnegalley osed heje:-
) patetla a n Ymehad
fmanufaltJe aje cetj uua le
all ptoduels
2 The expenses on diseLt maleriad coNsihale e wia7
facbo n delenuining fetal teth
4) Man-heny otale - 9jujs
Man hesq gale oetheael cst/ Tohal man leut pezt
=

91 nIs Mephad, oethead cwst o be

ollotol n e e
ofol hpa)s pegt by He liofee_L Laloun and n o
seqes pald fo Hheu

5) MachiNe-hraat 7oe:
Plachine hout ot oke = ovehead Crit/ashige bousy
genenall lseel cwtede curgk clene motly,
malyne qat by hand
sSa) Elegeyk cost1
The etol ati f
)Cost maleria
nanufaitorig pozodud wroish
Cost d labot
i)Epe1es
ea ki19 Rhe tetol cost pe Pandut isio
hese
hesèeleumegka1e ebsegiolbecomit 4
er it makes us o undotsja5d
It is
essenhal h beteak
He
up e tolol cni
poqoduct 1go hese clenyegts becad 1 help

Potoadu cho) of o tonpaty in He Lorat nanef

b) Sandand cest1-3/ i a pre- Jeiged cost hich

isdeleruiyed py be produahog gesd eg h
bans ceslaig Peled sodasd uzdes perbig
speeipc codiHo7
Aclvanlege t
ySlendand cosh, being pre-deletuiqd osh ,onc vspl
In plasing asd budgdhng
i) Sandand cos b Prrde yajashs agoinst s j e
attal cosh a7e cpParid h astep47 ehotsg
os inefhciency ackal petfosuan
te
) The sand cssing csh1syphe egobies p a
wancgenfe7 fo petpr i fajoko:4 panoin
ceoy i7ohag, Da1goplsaha, piehvahog agd cogba
wADye ehienhly
 SisadanJages)- be
i
7 h e Jechadgae ef shanlatd coshin
moy
i} cose of srfall <0nte2ys becats
applicnbe dezyee
éshblisrtegt ef shayelends Tezuies bizh
slkill
9 i 3ailable fot 19dustres pnoud12 ne
slanda7liKed Produtf

Slaplajds ane vejy ngid esho]ates 2 nce sel, ote

18t alanged foat codsedetable hione
 cest Rs. 25,ooo
=

s e d alenal
pet houz
obe - Rs 3 S f i
Dosdket

Fauhry ovethead= 25/paye cost coré

Aduinistrahve avethead IS,. 4 fachry
=

Sales ovethcod: 3S% fPHsleeiioqcrst

Cashn
Ptaduea =2o0uzi

Ne nkers 30
cost
Totol unit
76 fird:- rfon-boet qale frethead

Labee7 cost fale

Lab Poyeduchion cost + Sales ovetheaa

Todo cest= Adeigjstjalju
cst = Jacory card-+ vehead
Prtpdutha
vethead
Parfe
cast + faceon
Faceoay c s t
=

cost + Lobraf coit

Pirte cost = alerial
srak x
Lobey cest = N 4artokens 81kefapet hw"x
ndoy di
tavethre x hou75
7
=30 3-sx8xas]+
30x

Rs2203 7,os0
23 2205d
- R
Rs. 5 o 0 0
P y e cest
=
S { U 7 0 3 o 5 8 8 1 2 -

4
Jaclenycost =Letcco
s3812-s -+ S8812-
Prodeulhot cosl= 7c
.375
RS 6 7634
33X6763 4.37
67634.375
Total cest =

Rs. 91 30 6- 41
 Tetalcost qI 306 -4 sb.53
Tolal ces6/arqil 200 20D
cot/Total Pr0
Tolel Ovetheed
duthne a d t ye
rtan- hoet yafe tovethead heu7s oveheæd
clages
|1162.s+ 8821 8 15 +236 72:03

30x3 Azs) +Iso

7:196

I762 5 +3821 8 75 +23672-03

Labeu- tost af ovetheed 2 , OU
 rarloders cast Sgeans
in aday
s y Given- Kele a
coshing
6ach gea7 oegit
3kq
Rs cost . S/a
Geot cesh ryaterial
=
labor
eapeTPS - / sOY, ef
h dit eut
oveheael
10.av/day
Pyotders P e y t Ps
=

ane g e a
coleulale :- Cost t Poduun2
76 RS
cest = 2x3 x
-p]aleti al
colculah 18 7.S
= Rs
cost= 2X/0 =Re-a Rs.20
Labon
=
Rs 30
expoqses
aVerhead

= 237S
t 30
Tofal cos t = 15875+ 2

=25/ S - Rs q-5
Tolal eost/gea7

Total ovethead = Rs-10.bo

S1 q Given Rs - 1S,oto
j e c t abos ch age
eidelt naketial =Rs.10, 000
Rs S,0o
PAmeCoSt ao1e prpduCH
avotheaal
1) Petcentage
To c a l e u l a t e : ) ovethead caut
-

Total avethead
X lOD
Calculaljo1 . aveshead cost ratetial coit

- X/60

V, avet h eael cost Total ovethea X 108.

Labor cCos4 IS,6T0
(Peteeylage on dsterh
la bor 66

Pizye Cest Pladei el test + labor cash

Rs?5, oTD
So1o Give FaclartyovethezcRs 10.0oo
disett Oa bout 24, 060 hoo1s
-

hou
To fil : -PRate Pet biaect labos
oveei head oPPU ed acooty ovet hezd
FacHOY ovetheod
Rade Pe ditecp la bscj heu = 3isect labor h r

1gddo_ -ReO.5]Labor

. J o b fakes 2ohx, hen oyetheac Hou7x Tale

2 0 x O.S
ERs1O
 bolls e quk/hov
factos1y, producho 1060
:
sad|| Gived
Tlaterial cast Rs 375
Laboy Cest= Rs. R4S
ezpeses
z RS 80
Diect
lola
abor cost
cost SOY.
Jactoory cost
cost = 30y,
h e tolel fa tioy
ofice o 2 qut Rs 1. 30
each bd1t
prce of
Sellu 1p loB ga )
culate.Plaagenfent

ToCal
Maletial cos
t + Lobej Coj
PMe cost =
pens5e
Calculah01 373t 24S 80

Rs 7o0
facho net head
cos t +
cest = Pm e
acot
367.3
Rs
S O x 245
=

cost
faclo
8 20. 25
cost XIO67.5
=
Rs
oice
1387-75
Total cos t
= RS

selliny pmcel r laoD quk 2 bal s) -1. 3x Ioso

Rs 13 OO
lapgevyeyt l l make l o 1 3 8 138 7. 75-1300

87.7S R
Tolal 1bo pieces t Pfadured
Given
Aoqett Pateial cst Rs 160 00 =

sietett Laboaut cosl= 20D

ofel ryaletial 2 labou
Factosty o cost 3s) of Cost

ovetheao chatges 30/ d lactoe1 cest

To c a l l a e -

yPincuple Jatkn y ost

cost 2

9 f e manegeuyeyt shyt apra 1 0 . on jire

eoch a7ide
e1ov cost. Des n e selli poce
S
iPinciple cose =
Maleial cst + Labavtost-
= 1b0 + 200 Rs. 360

eeuto apcost= X360

= Ks 4 6
ovethead 50x
OD
48G Rs 14s 8
Tohal cost 360 t126 + 143.8 = Rs 631 3
7otal cosr/unit= s 6-31

fost
feat poofl loy IOD X631-8)+
631-8 =69%.98

Solliny Pice unit= Rs 6-95

 Given
14) 20 coNnehn9 1ods, each weigh -4kg
wSYkuon Parl ot PS 2 2 3/ayp
Maleial cost = Rs 2.0o
I90yinect Raboat is clared
7D Calclae- Crsl Pfocdulion
Sa Laboot cost = 5+3 Rs 3
Maleqial cest= 20 x4K2 =
Ks )60
140x 3 -Ks I1-2
acoety ovethead 2 aduinistqahine -
Nor0 poqoducHom cost Rs1792
Payoduckio? cst/qod : Rs 896